Resolution No. 94-49 CITY OF TIGARD, OREGON -
RESOLUTION NO. 94-- 4nJ
A RESOLUTION v-STABLISHING SANITT_RY SEWER REIMBURSEMENT DISTRICT NO. 7
WHEREAS, sanitary sewer improvements have been constructed to serve
properties along the north side of Park Street west of Grant Avenue;
and,
WHEREAS, the costs of said sewer construction have been paid by Ken
Randall Homes, LLC; and,
WHEREAS, formation of a reimbursement district has been requested by Ken
Randall Homes, LLC, and the applicant has paid the application fee
required by TMC 13.09.020; and,
WHEREAS, the City Engineer has submitted a report describing the
improvements, the area of the reimbursement district, the costs of the
improvements, a methodology for spreading the cost among the parcels
within the district, the recommended annual fee adjustment, the
recommend-ad City charge for administration, and the recommended duration
of the district; and,
WHEREAS, a public hearing was held by the City Council on November 1,
1994, in accordance with TMC 13.09.050(1); and,
WHEREAS, notice of the public hearing was mailed on October 19, 1994, to
the owners of property within the proposed district in accordance with
TMC 13.09.060; and,
WHEREAS, the C_ty Council has determined that formation of a
reimbursement district as recom;nended by the City Engineer is
appropriate.
NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that:
Section 1: The City Engineer's report titled "Sanitary Sewer
Reimbursement District No. 711, attached hereto as Exhibit
A, is hereby approved.
Section 2: A reimbursement district is hereby established in
accordance with TMC Chapter 13.09. The reimbursement
district shall be the area shown and described on Exhibit
B and shall be known as "Sanitary Sewer Reimbursement
District No. 7"_
Section 3: Payment of the reimbursement fee as shown in Exhibit C is
a precondition of receiving city permits applicable to
development of each parcel within the reimbursement
district as provided for in TMC 13.09.110.
Section 4: The Ci-'-y Administrator is hereby authorized and directed
to enter into an agreement with Ken Randall Homes, LLC,
in accordance with 13.09.070(2) and in accordance with
RESOLUTION NO. 94--L(9--
Page 1
the recommendations of Exhibit A. An administrative fee
of $100.00 shall be paid by the: applicant in accordance '
with TMC 13.09.030(f) . No fees shall be reimbursed to
the applicant until the rewired agreement has been
completed by the applicant and the required
administrative fee has been paid by the applicant.
Section 5: The City Recorder Shall notify the owners of all property
within the district and the applicant of the adoption of
this resolution in accordance with TMC 13.09.080.
Section 6: The City Recorder shall cause notice of the formaticn and
nature of the reimbursement district to be filed in the
office of the County Recorder in accordance with TMC
13.09.09u.
PASSED: Thisdayyoof�y(�✓-e-+-n 02A , 1994.
�tMay-&4-7 -un
City of Tigard
ATTEST: Co
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City Recorder - City of Tigard
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RESOLUTION NO. 94--qq
Page 2
Exhibit A
City Engineer's Report
SANIaARY SEWER REIMBM;LSIP SNR' DISTRICT uC. 7
Background
As a result of two minor land partitions, a large lot on SW Park
S reet has been divided into four lots. A sanitary sewer line has
been constructed along Park Street to serve the new lots. The new
sewer line connected to an existing sewer at Grant Avenue and
extended westward along Park Street to the west boundary of the
partitioned property. A sewer line was also constructed north from
Park Street to serve the new lots created by the minor land
partition.
The sewer lines are complete and available for connection.
Financing
The cos`s of construction of the new sewer line were paid by Ken
Randall Homes, LLC, applicant for the reimbursement d strict.
Formation of the nbursefnent district will provide for the
applicant to be reimbursed for a share of the sewer line costs in
the future as other properties are connected to the sewer.
The sewer extension has provided sewer service to three lots that
are not owned by the applicant. Construction by the applicant has
relieved the owners of the adjacent properties from the need to
install sewer improvements in the future. Thus, the applicant is
qualified to request formation of a reimbursement district in
accordance with TMC 13.09.020.
District Area
The boundary of the proposed reimbursement district is shown in
Exhibit B. The district includes all lots along the portion of
Park Street :,here the new ewer was coYIst_ucted, except for those
lots that were already served by existing sewer lines. The
Property on the south side of Park Street is served by an existing
line to the south and is not included in the proposed district.
The lot at the northwest corner of Grant Avenue and Park Street is
served by an existing line in Grant Avenue and is not included in
the proposed district.
Cost
In the original application letter dated September 19, 1994, the
applicant suggested that the total cost of the sewer eligible for
the reimbursement district is $55,018.70. After discussion, the
annliCant -Submitter) a revised letterl,*c tion
app++..uv dated October
17, 1994. In the revised letter, they applicant agrees that the
costs related to extension of the sewer line into the new minor
land partition north of Park Street should not be included in the
reimbursement district costs. The revised letter suggests that the
mom total cost eligible for the reimbursement district is $40,422.56.
After review of the documentation provided by the applicant, the
City Engineer has determined that the total cost for the
reimbursement district should be $35,48x.14. The City Engineer
disallowed certain costs for which sufficient documentation is not
available. Other costs that appeared to apply to both the eligible
.. _. se!-!er l i_a Pare ,t,_-net and then1 i,.;hi e- '1 ine n(rth of Park
were apportioned in accordance with the respective construction
costs of the two lines. The reimbursement district application fee
was also disallowed.
The detailed documentation submitted by the applicant is available
in the reimbursement district file in the Engineering Department.
It is recommended that the total cost of the reimbursement district
be set at $35,483.14, which includes construction, engineering and
inspection costs.
Methodology for spreading the cost
The lots in the proposed district are all zoned It-4.5 which
requires a minimum lot size of 7,500 square feet. None of the
lots, except parcel no. 1, has sufficient area for further
subdivision. Parcel no. 1 could potentially be divided into two
lots.
There are a total of 6 existing lots in the reimbursement district
and a potential future total of 7 lots. All of the lots have the
same zoning. Therefore, it is recommended that the costs be
divided equally among the 7 potential lots. This yields a cost per
lot of $5,069.02
Parcel no. l is currently one large lot with one residential
structure. It is recommended that parcel no. 1 be charged at the
unit rate of $5,069.02 per structure actually connected, with total
reimbursement fees over time not to exceed two units. Thus, if the
existing house is connected to the sewer, the reimbursement fee
would be $5,069.02; if the property is later subdivided and a
second house is connected, the second house would be charged an
additional fee of $5,069.02.
The proposed charges are summarized in Exhibit C.
There are no known prior contributions by property owners within
the district.
Value of unused capacity was not considered relevant, since the
sewer lines have been constructed at the minimum size allowed by
City standards.
Annual fee adiustment '
TMC 13.09.030 (e) provides for an annual fee adjustment as a return
on investment for the applicant. The applicant has requested that
the annual fee adjustment be set at 12% and has submitted evidence
of a construction loan at an annual rate of 12%.
On past reimbursement districts, the Council has allowed annual fee
adjustments varying between 0A and 7%. In general, the rate has
been based on the potential investment earnings lost by the
-- applic;anL, LaLhet Lhan on loan costs.
Based on a review of the rates established in previous districts,
it is recommended that the annual fee adjustment be set at 7%. The
reimbursement fee of $5,069.02 would then be increased by 7%
($354.83) each year on the anniversary date of the formation of the
district.
Administrative charge
TMC 13.09.030(f) provides that the applicant must pay a fee for the
City's administration of the district. The Finance Director
recommends that a fee of $25 per potential feo coollartinn is
appropriate to cover the City's costs of collecting and disbursing
the reimbursement fee. In the proposed district, there is a
potential of four parcels which would pay the fee (since an
applicant is not reimbursed for the applicant's parcels) .
On this basis, it is recommended that the administrative fee be
$100.00.
Duration of the district
Following the hearing co November a., 1994, the Citv Council
determined that the duration of the reimbursement district should
be ten years.
Recommendation
It is recommended that a reimbursement district be formed for the
area indicated in Exhibit B and at the rates recommended above.
Submitted November 1, 1994
Randall R. Wooley
City Engineer
EXHIBIT "B"
DESCRIPTION 'OF REIMBURSEMENT DISTRICT No. 7
A tract of land situated in the Northwest one quarter of the
Southwest One-Quarter of Section 2, Township 2 South, Range 1 West,
Willamette Meridian, City of Tigard, Washington County, Oregon
described as follows:
Beginning at the Northwest corner of Parcel 2 of Partition Plat
1992-092 as recorded in the Partition Plat records of Washington
couia%y thence S 89' 44; vo^ E, along the north line of said
Partition Plat, a distance of 189.46 feet to the Northeast corner
of said Partition Plat; thence S 00' 01' 50" W, along the coast
line of said Partition Plat, a distance of 94.10 feet to the
Northwest corner of the land described in Fee No. 92092279 of the
Washington County Deed Records; thence N 89* 40' 31" E, along the
north line cf said Fee No. and the north line of the land described
in Fee No. 89029381 of the Washington County Deed Records , a
distance of 140.00 feet to the Northeast corner of said Fee No
890 29381; thence S 00, 01' 50" W, along the East line of said Fee
No. , a distance of 199.88 to the south line of S.W. Park Street;
tLence S 890 09' 08" W, along said south line, a distance of
329 .51 feet to the extension of the west lire of Partition Plat
1952-092; thence N 00° 02' 00" E, along said west line, a
distance of 298.94 feet to the point of beginning.
GRANT
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PARK SEWER
STi
PROPOSED REIMB RSE_MENT
DISTRICT
EXHIBIT C
REIMBURSEMENT FEES
Parcel No. Tax Man & Lot No. Reimbursement Fee
1 2S1 2CB 6801 $10,138.04*
2 2S1 ?CB eqn n 5.069.02**
3 2S1 2CB 7100 5,069.02**
4 2S1 2CB 7200 5,069.02**
5 2S1 2CB 1500 5,069.02
6 2S1 2CB 1600 5,069.02
$35,483.14
NOTES:
Note 1: Fees to be adjusted annually per TMC 13.09.030 (e)
*Note 2: The reimbursement fee for Parcel No. 1 shall be
$5,069.02 per connection to the sewer, not to exceed a total of
$10,138.04 during the life of the reimbursement district.
**Note 3: Parcels No. 2 through 4 are owned by the applicar_t. Per
TMC 13.09.040 (2) , no reimbursement fee shall be collected on these
parcels.
Note 4: The reimbursement district expires on November 1, 2004.
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